NORTH PARK UNIVERSITY School of Business and Non-Profit Management

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1 Class #: SBNM 5321 Course Title: Financial Modeling Spring 2016, Quad A SPECIAL: Date/Time See schedule below INSTRUCTOR Name: Professor Pam Schilling Office Phone: (773) pschilling@northpark.edu Office Hours: Mon, 1:00-3:00pm Tues, 2-5pm by appointment Office Location: 5043 N. Spaulding, 2nd Floor (East of the bridge over the river) CLASS SCHEDULE Week Date Time Agenda 1 Sat, Mar 19 10:30am-1:30pm : Introduction Sat, Mar 26 No class meeting Easter Break 2 Sat, Apr 2 10:30am-4:30pm : Next Steps 3 Sat, Apr 9 No class meeting Model working session 4 Sat, Apr 16 10:30am-4:30pm : Interim Model Review 5 Sat, Apr 23 No class meeting Presentation working session 6 Sat, Apr 30 10:30am-1:30pm : Class presentations 7 Sat, May 7 No class meeting Final model working session Sun, May 8 11:00pm Final Model Due INTRODUCTION This course studies the planning, design, development and applications of a financial model. The goal of the course is to take many of the financial concepts learned early in the program, including Balance Sheets, Income Statements, Cash Flow Statements, business drivers and assumptions, cost of debt, equity structures, the weighted average cost of capital, tax, depreciation and amortization effects and the discounted cash flow technique to assist in pro forma analyses of a business venture. The course will also address enterprise valuation, ratio analysis, capital decision-making, scenario modeling, and ultimately, completion of an acquisition analysis. REQUIRED TEXTS Holden, Craig W., Excel Modeling in Corporate Finance, 5th Edition, Pearson Prentice Hall. ISBN COURSE DESCRIPTION This course is taught in a HYBRID format with a combination of class meeting and out of class working sessions. Classes will meet on the North Park campus as defined by the class meeting schedule (see Page 1). The class meeting sessions will include the following (at a high level): Page 1

2 Week 1: Overview of the key content of the course, review of finance theory/concepts necessary for construction of the financial model and Excel best practices (and some training to kickoff the class). This session will include a review of the case study and the expectations of the class. Finally, a discussion of the model building steps for the case study will be conducted. Week 2: This session will include a discussion and Q&A about progress on the model and a review of the more advanced finance and modeling concepts (scenario modeling and valuation). Week 4: This session will include a discussion and Q&A about work on the model and individual interim reviews of student models. A checklist of required items for completion will be provided and each student will have a scheduled 15 minute review with Professor Schilling. Week 6: Individual presentations of the case analysis, recommendations, and the model itself. During times when there is no class meeting, Professor Schilling will be online and available for consultation (via Skype, FaceTime, or phone). There will also be a webinar scheduled each week allowing class members to ask questions or discuss challenges to obtain input/suggestions from colleagues and the Professor. Prerequisite: SBNM 5310 (Strict adherence to this prerequisite) COURSE OBJECTIVES North Park University uses the IDEA course rating system to measure student progress towards learning objectives and to measure student satisfaction with their overall learning experience. These course evaluations are administered at the end of the term. The results of these evaluations are very important to us and we use them for ongoing efforts to improve the quality of our online courses. The overarching IDEA objectives for this course are the following: 1. Learning to apply course material (to improve thinking, problem solving, and decisions) (Course Obj #1/2/3) 2. Developing specific skills, competencies, and points of view needed by professionals in the field most closely related to this course. (Course Obj #1/2/3) 3. Learning to analyze and critically evaluated ideas, arguments, and points of view. (Course Obj #2/3) In addition to these general IDEA objectives, students who complete this course will be able to achieve the following objectives specific to this course. 1. Increase Excel proficiency. (IDEA Obj. 1/2) 2. Appreciate the purpose of a financial model and its contributions to decision making within the financial management function an organization. (IDEA Obj. 1/2/3) 3. Apply key finance/financial management concepts into a real world deliverable and provide consultative financial advice based on real world problems. (IDEA Obj. 1/2/3) Page 2

3 COURSE OVERVIEW Week Day/Date/ Location Topics and Readings Chapter: Title Assignments / Deliverables See Moodle for specific due dates 1 Sat, 3/19 Introduction Course overview Case study review Assignments/model requirements Excel Techniques/Best Practices Case Study background Financial Model Requirements background Holden (See Moodle for Chs) Sat, 3/26 NO CLASS, Easter Break 2 Sat, 4/2 Financial Model construction Benchmarking Analysis Reference SBNM 5310 course material for Ratio analysis, forecasting, NPV, sensitivity analysis, valuation analysis Holden (See Moodle for Chs) Financial Model: 30% complete 3 Sat, 4/9 NO CLASS Financial Model construction Dashboard research and design Holden (See Moodle for Chpts) Financial Model: 50% complete 4 Sat, 4/16 Financial Model construction Incorporation of Benchmarking Analysis Project Evaluation Analysis Valuation Analysis Dashboard construction Dynamic Modeling Holden (See Moodle for Chs) Financial Model: 70% complete Deliverable: INTERIM MODEL REVIEW 5 Sat, 4/23 NO CLASS Financial model finalization Dashboard finalization Analysis and recommendations creation Model packaging Powerpoint preparation Financial Model 95% complete Class Presentation 6 Sat, Apr 30 Presentations Recommendation summary Financial Model highlights Deliverable: INDIVIDUAL PRESENTATIONS 7 Sat, May 7 NO CLASS Complete final model Incorporate edits based on presentation feedback Sunday, May 8, 11:00pm Deliverable: FINAL FINANCIAL MODEL Reference Moodle for assignment details, instructions, deadlines and to upload/post all assignments. Page 3

4 COURSE GRADING Assignment Point Allocation Deliverable Points Interim model review 25 Class presentation 75 Final financial model 150 Total 250 Overall Course Grade At the completion of this course, you will receive a letter grade reflecting your performance in this course. Letter grades (from A F) will be awarded according to the existing policies of the School of Business and Nonprofit Management. The final course grade will be computed according to the total number of points earned for all assignments. Specific grade ranges and points can be found in the Moodle Grade Book. Late submissions of any assignments are not accepted if there are extenuating circumstances, acceptance of a late assignment may result in a 10% point deduction per day late. A late submission will be recorded as 0 points. All grades are final and not subject to debate. The detailed components of your grade will always be posted to Moodle. It is your responsibility to audit regularly for accuracy and to request any required corrections. Final grades will be made available within a week upon the completion of the course and are found in Moodle and WebAdvisor. IMPORTANT INFORMATION FOR THIS COURSE This course has numerous unique elements and these are critical for students to understand and remain aligned with expectations. We are working in an intensive format that includes class time, remote/online work, and focused creation of a specific deliverable. With this in mind, I 1) expect some level of selfdirection and motivation and 2) full engagement of all students, which includes attendance for 100% of class meetings. There are only 3 main assignments for the course the interim model review, the in-class presentation and the final financial model. As such, the other requirements of the course are more self-directed, including reading, research, analysis, and creation of the final deliverables. It is necessary for all students to participate in these activities and actively work as needed for successful completion. The instructor in this course serves in a unique role. There will be some, but limited teaching (through lecture and discussion) about applying theories and using the Excel tool for financial modeling. The instructor also serves as advisors to ensure your work is progressing to facilitate both learning and tangible outcomes. Please ask if you have any questions. Instructor responsibilities include: 1. Design the course and learning modules in such a way that students have every opportunity to achieve the learning objectives. 2. Provide reactions to student responses and discussion as appropriate to clarify important ideas and concepts. 3. Provide opportunities for group work that will include discussion as well as hands-on exercises. 4. Provide updated information on relevant resources for the various topics of interest. 5. Read and critically assess students assignments and provide feedback. 6. Respond to all student s and phone calls in a timely fashion. Page 4

5 EXPECTATIONS BY TOPIC Communication Expectations Communication skills are a major part of your academic and professional development. As this course is in the School of Business and Nonprofit Management, we will assume that I am an executive and you are an employee on my team. Therefore, every communication you send should be highly professional. This means formatted and edited for 100% accuracy in spelling, grammar, punctuation, and word choice. Your question or inquiry should be specific and clear. I will be able to respond more promptly if this is the case. Also, I will not respond to any that is not accurate or does not have a clear request. I check regularly and late into the evening. If I do not respond within one business day, please apply proper diligence and follow-up, and resend your communication (assume that I ve overlooked your message in error). When authoring an , please use an appropriate subject which is indicative of the contents of the message. For example: Clarification question: Problem Your primary point of reference is this syllabus. Please review in detail before approaching me with questions about the course structure and content contained in this syllabus. Do not be surprised if I refer you to the syllabus or Moodle as an answer. My preference for contacting me is as follows: 1. (at any time) 2. Office hours / Appointment to speak via telephone/skype arrange via 3. Voic message (recognize I am seldom in my office and check messages infrequently) Technology Tools Expectations Understanding technology tools in today s business environment is critical. As such, I require all work be done in Microsoft Word, Excel, or Powerpoint (or equivalent) and specify the appropriate tool for each assignment. Computer Requirements: In order to effectively participate in and successfully complete this course, each participant will need to have access to a computer and a high-speed internet connection. Please visit Technology/Network/Minimum-Requirements for information on computer requirements and network access. Moodle: All students are expected to access Moodle. All grades and critical directions for assignments are posted on Moodle. This is also the official record for all grade-related issues. Check and audit grades regularly. All students are expected to check your North Park s regularly (NOTE: Outside accounts like Yahoo and Hotmail often forwards class s to your spam folder). I send significant information via and expect all students to have read the information sent. If you do not use your North Park address, please make sure is being forwarded properly. Software Tools: All students are expected to use the appropriate software for the course. This course relies heavily on Microsoft Word, use of the internet, and many online research resources. Page 5

6 POLICY ON ETHICS - PLEASE READ THIS SECTION THOROUGHLY In keeping with our Christian heritage and commitment, North Park University (NPU) and the SBNM are committed to the highest possible ethical and moral standards. Just as we will constantly strive to live up to these high standards, we expect our students to do the same. To that end, cheating of any sort will not be tolerated. Students who are discovered cheating are subject to discipline up to and including failure of a course and expulsion. Our definition of cheating includes but is not limited to: Plagiarism the use of another s work as one s own without giving credit to the individual. This includes using ANY materials from the Internet. Copying another s answers on an examination. Deliberately allowing another to review and/or copy one s answers or work. Signing an attendance roster for another who is not present. You should not reference any material for this course that could be considered a solution for homework or exams. This includes review of other class member s assignments, prior class member s assignments, any solutions found on the internet, or other source. There is a NO tolerance policy and any action that appears to violate this policy will receive a 0 grade and potential failure for the overall course. In the special instance of group work, the instructor will make clear his/her expectations with respect to individual vs. collaborative work. A violation of these expectations may be considered cheating as well. For further information on this subject you may refer to the Academic Dishonesty section of the University s Catalog (available at In conclusion, it is North Park s mission to prepare you for a life of significance and service. Honesty and ethical behavior are the foundation upon which such lives are built. We therefore expect the highest standards of each student in this regard. POLICY ON ATTENDANCE The graduate courses in the SBNM are all 7 weeks in length. Missing one class session is allowed without penalty as long as all readings and assignments are made up by the student within a reasonable time period (the following week). Failing to log into an online course site for an entire week is allowed, but a penalty may be applied at the instructor s discretion. Missing a second class session is allowed only in unusual circumstances by prior arrangement with the instructor. Since this represents almost 30% of the engagement time for the course, the student runs the risk of receiving a lower overall grade for the class. Faculty are encouraged to drop the course grade by a full letter grade in this situation. A student who misses three classes (or the equivalent two weeks for an online class) will automatically fail the course, unless the student drops the course before the seventh week of class. Students who drop a course will be held responsible for tuition, based upon the current North Park University refund policy outlined in the University Catalog. As this course only has 4 scheduled face-to-face meetings, missing any class session is strongly discouraged prior arrangements with Professor Schilling must be made. STUDENT WITH DISABILITIES Students with disabilities who believe that they may need accommodations in this class are encouraged to contact the SBNM program office ( ). Please do so as soon as possible to better ensure that such accommodations are implemented in a timely manner. For further information please review the following website: Resources. Page 6

7 TITLE IX Students who believe they have been harassed, discriminated against, or involved in sexual violence should contact the Dean of Students ( ) or Director of Human Resources ( ) for information about campus resources and support services, including confidential counseling services. As a member of the North Park faculty, we are concerned about the well-being and development of our students, and are available to discuss any concerns. Faculty are legally obligated to share information with the University s Title IX coordinator in certain situations to help ensure that the student s safety and welfare is being addressed, consistent with the requirements of the law. These disclosures include but are not limited to reports of sexual assault, relational/domestic violence, and stalking. Please refer to North Park s Safe Community site for contact information and further details. USE OF APA PUBLICATION MANUAL The School of Business and Nonprofit Management (SBNM) has adopted the Publication Manual of the American Psychological Association (APA) as the standard and required format for all written assignments. Our goal in adopting the APA Manual is to enhance student learning by: 1. Improving student s writing skills. 2. Standardizing the required format of all written assignments in all SBNM courses. 3. Emphasizing the importance of paper mechanics, grammatical constructs, and the necessity of proper citations. 4. Holding students accountable for high quality written work. If you are unfamiliar with the requirements of the APA Publication Manual, we recommend that you purchase the reference manual and/or that you consult one or more of the suggested resources as listed on the Student Resources section of the SBNM website. It is your responsibility to learn and ensure that all written work is formatted according to the standards of the APA Manual. In conclusion, it is our mission to prepare each student for a life of significance and service. Honesty and ethical behavior are the foundation upon which such lives are built. We therefore expect the highest standards of each student in this regard. Page 7